Mulhouse and Snell Limited budgeted a figure of £53 220 in net profit for the month of August 20X5, based on a target sales figure of 2000 units.The actual outturn was that 2020 units were sold.The flexed budget net profit figure was £54 470 and the actual net profit for the month was £54 400. What was the sales profit volume variance for August 20X5?

Question

Quizplus · Accepted Answer

Sales profit volume variance = Actual net profit - Flexible budget net profit
Sales profit volume variance = £54 400 - £54 470
Sales profit volume variance = -£70 (F)

Note that the variance is negative, indicating that the actual net profit was lower than the flexed budget net profit.

Mulhouse and Snell Limited Budgeted a Figure of £53 220